A processor of alligator hides can produce either purses or shoes. If the demand for alligator shoes increases, then the ________alligator purses will________.
A) supply of; increase
B) demand for; increase
C) demand for; decrease
D) supply of; decrease

Question

Quizplus · Accepted Answer

If the demand for alligator shoes increases, the processor may choose to produce more shoes and less purses, causing the supply of alligator purses to decrease. Therefore, option D is correct.

A Processor of Alligator Hides Can Produce Either Purses or Shoes